People Bank of China invested to acquire 1.75 Crs Sahres of HDFC
China’s central bank People’s Bank of China (PBOC) has acquired more than one per cent stake in India’s private sector housing finance lender (residential finance lender) HDFC Ltd in the March quarter. For this, PBOC has bought 1.75 crore shares of HDFC.
The exchange is believed to have taken place between January and March 2020. According to information from the regulatory exchange, the Bank of China has bought 1,74,92,909 crore shares, giving it a 1.01 per cent stake.
It is noteworthy that in the last few weeks, the share prices of HDFC Limited have fallen. The decline started from the first week of February, after which it saw a 41% reduction in its price. HDFC Vice President and CEO Keki Mistry said that as of March 2019, People’s Bank of China had a 0.80 per cent stake and grew by 0.20 per cent in March 2020.
Significantly, China is investing in the financial institutions of major countries of Asia at a time when the stock markets of major economies are declining. China has also increased investment in recent years, mainly in infrastructure projects and technology companies, including in Pakistan and Bangladesh. It is steadily increasing its economic scope in Asian countries.
